The determinants of entry and exit rates into U.S. manufacturing industries

Austin, John S.; Rosenbaum, David I.

doi:10.1007/bf02229762

Cited by 48 publications

(23 citation statements)

References 11 publications

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“…Mata and Portugal (1994) argued that industry growth, consistently, has a positive effect on firm duration, indicating that, after the effect of turnover is taken into account, fast growing industries offer a less hostile environment for the entering firms. Empirical support to this argument is also provided by a large number of studies (Austin and Rosenbaum, 1990;Doi, 1999;Dunne and Roberts, 1991;Segarra and Callejon, 2002). On the other hand, Audretsch et al (2000) report a negative relationship between sector growth and firm survival that they attribute to greater uncertainty characterizing high growth industries.…”

Section: Factors Influencing Firm Survivalmentioning

confidence: 63%

Productive efficiency and firm exit in the food sector

et al. 2008

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Section: Factors Influencing Firm Survivalmentioning

confidence: 63%

Productive efficiency and firm exit in the food sector

et al. 2008

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“…The dominant framework presumes that each firm behaves with the objective of profit maximization, and exits from market occur when the profit (or expected/revealed profit) is below some threshold (Jovanovic, 1982;Ghemawat and Nalebuff, 1985;Frank, 1988;Klepper, 1996;Das and Das, 1996). Thus, in empirical studies, exits have firstly been supposed to be linked with economic variables such as the rate of growth or contraction rate of the market, the level or change of the price-cost margin (or other profit measures), strength of entry and exit barriers, and firm size (e.g., Mansfield, 1962;Shapiro and Khemani, 1987;Austin and Rosenbaum, 1990). 4 There are several Japanese studies that follow this approach (Kusuda, Yokokura and Negoro, 1979;Morikawa and Tachibanaki, 1997;Honjo, 1999a;and Doi, 1999).…”

Section: Previous Researchmentioning

confidence: 99%

Which Firms Exit and Why? An Analysis of Small Firm Exits in Japan

Harada

2006

Small Bus Econ

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The objective of this paper is to investigate exit behaviour of small firms, using data from The Survey on the Retirement of Small Firm Managers, which provides detailed information on exit and post-exit behaviour of small firms and their managers. The survey shows that small-firm exits occur not only because of economic difficulties ('Economic-Forced Exit'), but also for various other important reasons ('Non-Economic-Forced Exit'). We estimate probit models to examine differences between these two exit classes, and it is shown that the probability of economic-forced exit is significantly higher if the manager is relatively young, male, if the firm has borrowings from a financial institution, and if its sales tend to decrease. It is also shown that many managers recommence work as managers or as employees after exit. The proportion of managers who work after exit, especially as employees, is higher in the case of economic-forced exit than for non-economic-forced exit. These results indicate the potential importance of distinguishing between these two types of exits in exit studies.

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“…2 Other studies use lagged dependent variables as covariates (e.g., Shapiro and Khemani, 1987;Austin and Rosenbaum, 1990;Evans and Siegfried, 1992;Fotopoulos and Spence, 1998). However, their goal is not to analyse short-term dynamics (rather, they tend to interpret the associated coefficients as long-term effects) but to cope with identification, endogeneity and/or data availability problems.…”

Section: Symmetrymentioning

confidence: 96%

Firm size and short-term dynamics in aggregate entry and exit

Manjón-Antolín

2010

International Journal of Industrial Organization

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The interdependence between the sectorial rates of entry and exit is an established "stylised fact" in the research on industry dynamics. This paper argues that the size of firms and the reaction-adjustment period are important conditions that are missing from the empirical models typically used in this literature. I illustrate the effects of this omission on a panel of Spanish manufacturing industries. Estimates from errorcomponent systems of equations provide evidence of a conical revolving door phenomenon and of dynamic partial adjustments in the replacement-displacement of firms.

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The determinants of entry and exit rates into U.S. manufacturing industries

Cited by 48 publications

References 11 publications

Productive efficiency and firm exit in the food sector

Productive efficiency and firm exit in the food sector

Which Firms Exit and Why? An Analysis of Small Firm Exits in Japan

Firm size and short-term dynamics in aggregate entry and exit

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